The social security in Iran is regulated by a law of 1975, on social security and one of 1986, on self-employed insurance. Together they provide for a social insurance system.
The system covers all employed and self-employed persons. Self-employed persons may choose different levels of coverage. Voluntary coverage is available for previously insured persons up to age 55 with at least 30 days of coverage and for drivers of commercial vehicles. Special systems are provided for government employees and armed forces personnel.
Funds are contributed by the insured person, the employer and the government in the following proportions: (i) Insured person: 7% of earnings. Voluntarily insured persons contribute 26% of earnings; commercial drivers contribute 10% of earnings. ; (ii) Employer: : 20% of payroll; and (iii) government: 3% of payroll, including voluntarily insured persons; 17% for commercial drivers. In addition, to subsidize certain strategic industries, the government pays the employer's contributions for up to 5 employees per company.
The minimum monthly earnings used to calculate contributions for salaried employees are 3,030,000 rials (approximately USD 285).
In case of self-employed persons, the contribution is 12% of earnings.
The funds are available for men at age 60 and women at age 55, with at least 19 years of contributions; men at age 50 and women at age 45 with at least 30 years of contributions; or at any age with at least 20 continuous years or 25 non-continuous years of work in an unhealthy working environment or in a physically demanding natural environment. Women aged 42 with at least 20 years of contributions receive a reduced pension. Retirement from insured employment is necessary.
The old-age pension is 3.33% of the insured's average earnings in the last 2 years multiplied by the number of years of contributions. The maximum number of years used to calculate the pension is 35. For insured persons working in difficult or hazardous occupations, each year of paid contributions counts as 1.5 years. The minimum pension is the minimum wage of an unskilled laborer. The minimum wage of an unskilled laborer is 3,030,000 rials a month (approximately USD 285). Benefits are adjusted annually according to wage changes.
The Ministry of Welfare and Social Security provides general supervision, while the Social Security Organization administers the program through provincial branch offices and local agencies.
Source:Social Security Programs Throughout the World: Asia and the Pacific, 2010, available at http://www.ssa.gov/policy/docs/progdesc/ssptw/2010-2011/asia/index.html